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Chick-News.com Poultry Industry News, Comments and more by Simon M. Shane

Pilgrim’s Pride Reports on Q3 of FY 2018

11/02/2018

In a press release dated October 31st. Pilgrim's Pride Corporation (PPC) announced results for the 3rd Quarter of Fiscal 2018 ending September 30th 2018.

The following table summarizes the results for the period compared with the values for the corresponding quarter of the previous fiscal year (Values expressed as $ x 1,000 except EPS)

3rd Quarter Ending September 30th.

2018

2017

Difference (%)

Sales:

$2,697,604

$2,793,885

-3.5

Gross profit:

$169,741

$478,574

-64.5

Operating income:

$85,346

$372,246

-77.1

Net Income

$29,463

$238,313

-87.6

Diluted earnings per share:

$0.12

$0.93

-87.1

Gross Margin (%)

6.3

17.1

-85.2

Operating Margin (%)

3.2

13.3

-75.9

Profit Margin (%)

1.1

8.5

-87.1

Long-term Debt:

$2,302,000

$2,635,000

-12.6

12 Months Trailing:

     

Return on Assets (%)

11.4

   

Return on Equity (%)

36.3

   

Operating Margin (%)

8.3

   

Profit Margin (%)

5.3

   

Total Assets

$5,976,438

$6,248,652

-4.3

Market Capitalization

$4,560,000

   

52-Week Range in Share Price: $16.01 to $38.39

Market Open Thursday Nov. 1st. $17.31 Noon, Friday Nov. 2 nd $18.31 (- 3.5%)

Forward P/E:9.4 Beta -0.5

In commenting on Bill Lovette, CEO of Pilgrim's Pride stated "during Q3 conditions in the U.S. markets continued to be mixed, with the commodity segment experiencing counter seasonal and weak pricing whereas the less commodity businesses better balanced. Despite challenging market conditions in commodity chicken, the investments we made over the past few years, the recent acquisitions and our capture of operational improvements, are adding diversification and differentiation to the evolution of our portfolio to deliver more resilient performance regardless of specific market conditions," stated Chief Executive Officer of Pilgrim's.

"In Europe, the integration is tracking better than expectations and we are slightly ahead of our $50 million synergy target for the next two years, supporting a margin increase of 130bps over last year. The results, given the adverse scenario of feed inputs, are a proof of our more stable business model, while our team members improved the operations and contributed to the strong performance by continuing to focus on cost optimization, cost control, excellent customer relationships, synergy capture and a culture of constant innovation while still maintaining a consistent margin performance of the business.

"Supply in Mexico Q3 grew more than expected as a reaction to strong prices in the first half and also as a result of outstanding growing conditions, impacting market prices. Prices are already recovering and while Mexico can be volatile quarter to quarter, historically our operations have produced very good margin performance on a full-year basis and we expect this trend to continue in the future. Prepared Foods are growing at a double digit rate and are generating strong results under both premium Pilgrim's and Del Dia® to drive the evolution of our Mexican portfolio towards more differentiated, higher-value products, and expanded margins."


 
Copyright 2018 Simon M. Shane